Raw Material Price Volatility: Reliance on petroleum-based feedstocks exposes OEC to significant fluctuations in input costs, directly impacting profitability margins and pricing strategies.

Environmental Regulatory Compliance: Stringent and evolving environmental regulations, including emission standards and carbon taxes, may necessitate substantial capital expenditures for compliance and could increase operating costs.

Demand Volatility in Key End Markets: Demand for carbon black is closely tied to industries such as tires, plastics, and coatings, which are susceptible to economic cycles and shifts in consumer preferences, leading to unpredictable sales volumes.